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Monday, October 16, 2006

The Dow was up another 20 points today on average volume. Nothing can stop it from 12000 so it seems. Advance/declines were over 2 to 1 positive. It implies even higher prices. I will have to fight myself not to short this thing sometime this week. We'll see. Gold was up a few bucks and the XAU was higher too. Volume is coming into the gold shares here for whatever reason. I am going to get some ABX calls if there is a pullback. We have inflation data out the next couple of days. They are potential market movers along with some tech earnings. Right now we are on a momentum swing. As long as we keep going higher, money will continue to flow into this market. I certainly don't want to try and fight that. The question is what happens when it ends? That will be interesting. For now there is no end in sight. We are overbought and have been for weeks. I may get a short term sell signal later in the week but that remains to be seen. Mentally I'm doing as good as can be expected, considering how much money I have lost recently. It has to be forgotten and the next trade must take center stage. It is the only way to go on. Not much else to say. It is Monday of expiration week. The will be opportunity here but I think I will prefer to go out to November. Time will tell.

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